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Tesla lowers price of China Model 3 to undercut BMW and Mercedes in strategic play
Tesla reduced the price of its Rear-Wheel Drive Made-in-China (MIC) Model 3 to RMB 299,050 or $42,919 after government subsidies. The price of the mass-produced electric sedan was initially pegged at $50,000, but in a surprise update on Friday, the Elon Musk-led electric carmaker lowered its price beneath a major psychological barrier of RMB 300,000, just days before the significant January 7 date. The price of the Dual Motor All-Wheel Drive Model 3 Long Range and Performance variant remains the same at 439,900 yuan ($63,086) and 509,900 yuan ($73,124), respectively.
The 16 percent price reduction on locally-produced Model 3 is made possible by new energy subsidies recently announced by the Chinese government. Tesla offers as much as RMB 24,750 savings for private purchases and RMB 17,325 for those operating new energy passenger cars. The Tesla China website now displays the adjusted prices of the locally-made Model 3s.
Tesla’s price reduction puts Model 3 in a category that’s strategically aimed at the entry-level luxury sedan category, with concentrations on Mercedes C Class and BMW 3 Series.
The question is if you were a Chinese customer, what would you buy?
1. A Tesla Model 3 starting at ¥299,050
2. A BMW 3 Series starting at ¥313,900
3. A Mercedes C300 starting at ¥308,000— Legacy 🚗 is f**ked (@tesla4k) January 3, 2020
Here comes the first order confirmation right after MIC #Model3 price drop today. More sales are on the way. Now Model 3 costs less than Merc C Class and BMW 3 Series. More young ppl will be able to afford Model 3s. Shoutout to @elonmusk @teslacn pic.twitter.com/A5S8qWcrif
— Ray (@ray4tesla) January 3, 2020
The latest development follows the announcement of the electric carmaker that the second round of Made-in-China Model 3 deliveries will happen on Jan. 7 at the Gigafactory Shanghai facility where the first 15 units of the mass-produced electric sedan were symbolically handed over to employees of Tesla.
The company also revealed during the Gigafactory 3 Delivery Ceremony that 30 percent of the parts used to build the Model 3 in China is locally-sourced, but with plans to completely localize its supply chain and open the possibility to more price adjustments in the future.
The cheaper entry-level Model 3 can help Tesla lure more customers away from local electric car makers and global brands in the largest EV market in the world. Tesla believes China could become the biggest market for its Model 3 and it might well be a key market that can help it achieve sustained profitability.
Recently, Tesla also announced that the Gigafactory 3 in Shanghai has achieved its Model 3 production goal and has been rolling out 280 cars per 10-hour shift or roughly 1,500 units a week. It plans to ramp up production and will likely hit 3,000 Model 3 a week when more production workers join the frontline.
The China arm of the Palo Alto, California-based company has been doing a hiring spree to add more people to help in different production line positions such as quality control, welding, painting, powertrain, and assembly, among others.
The first deliveries of the Made-in-China Model 3 happened exactly 357 days after the Gigafactory facility broke ground, an amazing feat for the first car plant in China wholly owned by a foreign carmaker.
Tesla is planning for a new 300+ stall Supercharger station that will be an expansion of an existing facility, and the company is planning to add a surprise for the Semi.
The Firebaugh, California Supercharger is currently 72 Superchargers, but Tesla filed for an expansion that will add 232 additional plugs for passenger vehicles, and it also plans to add 16 Semichargers.
This will be the biggest Supercharger station Tesla will have to date, just months after it finished the Supercharger Oasis in Lost Hills, California, which has 168 stalls. This will have 304 total Supercharger stalls, and then the additional 16 Megachargers.
🚨 This Supercharger station will have 304 total stalls and 16 Semichargers following this expansion
Absolutely INSANE size 🔥
This is located on I-5, so many semis will be traveling along this route https://t.co/hM9hdLcWwg
— TESLARATI (@Teslarati) January 13, 2026
The Firebaugh Supercharger is located on I-5, which is a major reason for why Tesla has chosen the location for additional Megacharger plug-ins, as Tesla Semi Program Manager Dan Priestley said on X earlier today.
Lots of trucks to electrify on I-5
— Dan Priestley (@danWpriestley) January 13, 2026
The project was revealed by MarcoRP, a Supercharger tracker.
The expansion is a massive signal for charging demand, especially as Tesla’s Superchargers are opened to numerous automakers and are no longer exclusive to the company’s EVs. Additionally, the installation of Megachargers is a good sign to come for the Tesla Semi program, which aims to truly ramp up this year.
Tesla plans to launch production of the Semi later this year.
It could also mean Tesla is going to expand its footprint of large-scale Supercharger projects in the coming years, which would be a big boost as EV adoption continues to soar in the United States.
Tesla has made two big interior changes to several Model Y vehicles in its lineup, and the changes come just as the new model year begins production.
Last year, Tesla launched the Model Y Standard, which separated the previous models into the “Premium” category. The Standard vehicles lack several features, including more premium interior materials, acoustic-lined glass, and storage.
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
The Model Y “Premium” trims are now getting several new upgrades, which come after the company launched a seven-seat configuration of the vehicle last night in the North American market for an upcharge of $2,500.
The new Model Y seven-seat configuration did not come with just an additional row of seating; it also came with a slew of other goodies that now come standard and were previously only available on the Model Y Performance, which was launched late last year.
All Black Headliner
The new Tesla Model Y Premium trims will now come standard with a black headliner, something that many owners have been requesting for some time.
The previous grey headliner and trim within the vehicle is now gone; it will be all black on all of the Premium trims from here on out, a welcome change:
Credit: Tesla
Larger and Higher Resolution Center Touchscreen
The center touchscreen in the new Model Y Premium configuration is now larger and has a higher resolution than the previous version.
In last year’s Model Y configurations (apart from the Performance), the center touchscreen was 15.4″. Now, Tesla has decided to go with the 16″ version across all Premium trims, which is a nice step up. It was nice to see this in the Performance, but it is really great to see Tesla include this in the Model Y’s more Premium trim levels.
Tesla Model Y Seven Seater
Tesla launched the latest iteration of the seven-seater for the Model Y on Monday night. Traditionally, the Model Y seats five passengers in total, but there were calls for a more spacious version several years ago.
Tesla released it, but it was extremely tight in the back, basically reserving those back seats for only small people or children.
Credit: Tesla
The new configuration looks to be slightly more spacious in the third row, but not as much space as most would require or want. Instead,
Elon Musk
Lufthansa Group to equip Starlink on its 850-aircraft fleet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Lufthansa Group has announced a partnership with Starlink that will bring high-speed internet connectivity to every aircraft across all its carriers.
This means that aircraft across the group’s brands, from Lufthansa, SWISS, and Austrian Airlines to Brussels Airlines, would be able to enjoy high-speed internet access using the industry-leading satellite internet solution.
Starlink in-flight internet
Under the collaboration, Lufthansa Group will install Starlink technology on both its existing fleet and all newly delivered aircraft, as noted by the group in a press release.
Starlink’s low-Earth orbit satellites are expected to provide significantly higher bandwidth and lower latency than traditional in-flight Wi-Fi, which should enable streaming, online work, and other data-intensive applications for passengers during flights.
Starlink-powered internet is expected to be available on the first commercial flights as early as the second half of 2026. The rollout will continue through the decade, with the entire Lufthansa Group fleet scheduled to be fully equipped with Starlink by 2029. Once complete, no other European airline group will operate more Starlink-connected aircraft.
Free high-speed access
As part of the initiative, Lufthansa Group will offer the new high-speed internet free of charge to all status customers and Travel ID users, regardless of cabin class. Chief Commercial Officer Dieter Vranckx shared his expectations for the program.
“In our anniversary year, in which we are celebrating Lufthansa’s 100th birthday, we have decided to introduce a new high-speed internet solution from Starlink for all our airlines. The Lufthansa Group is taking the next step and setting an essential milestone for the premium travel experience of our customers.
“Connectivity on board plays an important role today, and with Starlink, we are not only investing in the best product on the market, but also in the satisfaction of our passengers,” Vranckx said.
Tesla plans for new 300+ stall Supercharger with a special surprise for Semi
Tesla makes two big interior changes to several Model Y vehicles
